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United Kingdom VAT Calculator (20%)

Standard UK VAT is 20% on most goods and services, with a 5% reduced rate for home energy and children car seats. Calculate both forward tax addition and backward reverse extraction on any gross receipt amount.

Standard Statutory Rate

United Kingdom standard Value Added Tax rate is 20%

Currency: £ (GBP) • Reverse Multiplier: 1 + 0.20

£
Net Price:£100.00
VAT (20%):+£20.00
Total Gross:
£120.00

This tax calculator runs entirely client-side. No invoice amounts or business figures are saved or transmitted.

How VAT is calculated in United Kingdom

In United Kingdom, the statutory value added tax rate of 20% is applied to taxable products and services.

Add Tax (Exclusive): Gross = Net × (1 + 0.2)

Reverse Tax (Inclusive): Net = Gross ÷ (1 + 0.2)

Extracted Tax: Tax Amount = Gross - Net

Invoicing & Compliance Best Practices

  • Tax Invoices: Clearly separate the pre-tax net sum from the statutory 20% VAT line item.
  • Reverse Charge: For cross-border B2B purchases, verify whether reverse-charge accounting mechanisms apply under local regulations.
  • Exemptions: Certain essential items (such as healthcare, education, or staple foods) may qualify for zero-rating or reduced rates.

Other country VAT & Sales tax rates

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